Correlation Between Xilong Chemical and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Xilong Chemical Co and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Xilong Chemical and Fiberhome Telecommunicatio and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xilong Chemical with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Fiberhome Telecommunicatio.
Diversification Opportunities for Xilong Chemical and Fiberhome Telecommunicatio
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xilong and Fiberhome is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Xilong Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xilong Chemical Co are associated (or correlated) with Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Xilong Chemical and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Xilong Chemical is expected to generate 1.79 times less return on investment than Fiberhome Telecommunicatio. But when comparing it to its historical volatility, Xilong Chemical Co is 1.72 times less risky than Fiberhome Telecommunicatio. It trades about 0.18 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,721 in Fiberhome Telecommunication Technologies on November 5, 2024 and sell it today you would earn a total of 169.00 from holding Fiberhome Telecommunication Technologies or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Xilong Chemical |
| Fiberhome Telecommunicatio |
Xilong Chemical and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Fiberhome Telecommunicatio
The main advantage of trading using opposite Xilong Chemical and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Fiberhome Telecommunicatio can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Xilong Chemical vs. Chengtun Mining Group | Xilong Chemical vs. Sichuan Yahua Industrial | Xilong Chemical vs. Zhejiang Huatong Meat | Xilong Chemical vs. Youyou Foods Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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